Aletheia Capital Downgrades Dell Technologies Ahead of Q3 Earnings Amid Margin Pressures
Dell Technologies faces a pivotal moment as Aletheia Capital downgrades its stock to 'Hold' ahead of Q3 FY26 earnings. Analyst Angus Lin cites mounting margin pressures from rising memory costs and potential disruption from Nvidia's AVAP initiatives, which could erode Dell's system-level customization advantage. The firm removed its price target entirely, signaling heightened uncertainty.
Wall Street anticipates $2.47 EPS (up 16% YoY) and $27.13 billion revenue (11.3% growth), but Lin's revised forecasts suggest these estimates may prove optimistic. Gross profit margins for FY26-27 were cut by 1-2 percentage points, with particular weakness expected in Client Solutions and storage server segments.